Case | HBS Case Collection | February 2005 (Revised April 2011)

Haier's U.S. Refrigerator Strategy

by Pankaj Ghemawat, Thomas M. Hout and Jordan I. Siegel

Abstract

Haier, the first Chinese consumer durable brand in the United States, succeeded in the compact refrigerator, freezer, and air conditioner markets and then built a U.S. factory to enter the full-size market. Issues include the value of a local entrepreneur to the Asian manufacturer entering the United States; brand building and price positioning; the sourcing location decision trade-off between production costs and logistics costs; the role of change in the U.S. appliance distribution channels; global and regional competitive analysis; the response of U.S. competitors to the global sourcing evolution; and the time horizons of Chinese company management.

Keywords: Factories, Labs, and Plants; Global Strategy; Growth and Development Strategy; Brands and Branding; Market Entry and Exit; Competitive Strategy; Consumer Products Industry; China; United States;

Citation:

Ghemawat, Pankaj, Thomas M. Hout, and Jordan I. Siegel. "Haier's U.S. Refrigerator Strategy." Harvard Business School Case 705-475, February 2005. (Revised April 2011.)